Gas spat: RIL ‘bows’ to government rules, RNRL claims obstruction

Even as the dispute between RIL-RNRL over KG basin gas pricing has landed in the Supreme Court, the Mukesh Ambani-controlled Reliance Industries Ltd has informed the petroleum ministry that it will abide by the production-sharing agreement it signed with the government.

According to an Economic Times report, this is the first communication from RIL to the petroleum ministry after the Bombay high court order directing supply of KG gas to Reliance Natural Resources Ltd, controlled by Mukesh's brother Anil Ambani. The letter means that RIL will not agree to any gas supply agreement with RNRL without the government's approval.

On Friday, close on the heels of RNRL filing a special leave petition in the Supreme Court, RIL also filed a caveat in the SC requesting that the company be given a chance to explain itself in the case.

RNRL in its petition sought modification of the Bombay High Court order to make binding the gas supply from Mukesh Ambani-led Reliance Industries. It moved the SC two days after RIL said it would move the apex court against the Bombay HC order that upheld Anil Ambani group's plea for gas at a price agreed in 2005.

Confirming the move, RNRL counsel Mukul Rohatgi said the company's special leave petition would come up for hearing early next week. He said RNRL had sent multiple letters to RIL on the Bombay high court judgment.

Rohatgi claimed RIL had no intention of supplying gas and was just buying time instead of trying to arrive at an agreement as directed by the high court. He said the court should have directed immediate execution of the agreement. ''What we want from RIL shall not impact interest of the government,'' he added.